On the afternoon of June 17th, the National Assembly voted to approve the amended Investment Law project, comprising 7 chapters, 77 articles, and 4 appendices, with 446 out of 458 participating deputies voting in favor (representing 92,34% of the total National Assembly deputies). One of the notable points is the law prohibiting "debt collection services."
The law also stipulates a transitional provision stating that debt collection service transactions conducted before the effective date of this Law shall cease to be effective from the effective date of this Law, and the parties involved in the transaction may carry out activities to liquidate the debt collection transaction in accordance with civil law and relevant laws. The Investment Law (amended) takes effect from January 1, 2021. https://expertis.vn/
Regarding investment incentives
The law, which has been passed, stipulates that the subjects and sectors eligible for investment incentives focus on high-tech enterprises, innovative startup projects, research and development centers, production of new materials, new energy, clean energy, information technology products, software, and digital content.
Eligible recipients:
- Projects with a capital scale of 3.000 billion VND or more require investors to disburse a minimum of 1.000 billion VND within a 3-year period.
- Special incentive category: projects that disburse a minimum of VND 10.000 billion within 3 years from the date of issuance of the investment registration certificate or approval of the investment policy.
Regarding investment procedures
Regarding investment procedures in the form of capital contribution, share purchase, or equity purchase, many opinions suggest that strong and strict regulations are needed to prevent investment through these activities, especially in locations of strategic importance to national security and defense.
The Standing Committee of the National Assembly believes that ensuring national defense and security needs to be harmonized with the need to attract investment and develop the socio-economic conditions of island areas, border communes, wards, and towns, coastal communes, wards, and towns, or other areas that affect national defense and security.
Therefore, foreign investors' capital contributions, share purchases, and acquisitions of equity stakes must meet the market access conditions for foreign investors, which are stipulated in relation to land conditions, national defense, and security.
Regarding the Prime Minister's authority to approve investment policies, especially for projects with a capital scale of 10.000 billion VND or more, the majority of National Assembly deputies agreed not to add this provision to the amended law, arguing that this is private investment capital, and investors make their own decisions, bear their own responsibilities, and implement them according to the law.
